Last Updated on January 24, 2026 2:19 pm by INDIAN AWAAZ
WEB DESK
In Bangladesh, local textile millers have warned of an indefinite shutdown of spinning units from the 1st of next month if the government does not withdraw the duty-free import facility for certain yarns by the end of this month, raising fresh concerns over labour unrest and export disruptions ahead of the 12th February national election.
At a press conference in Dhaka on Thursday, leaders of the Bangladesh Textile Mills Association (BTMA) said the government will be responsible for any instability resulting from factory closures. They cautioned that a halt in production will make it difficult for mills to repay bank loans and meet other financial obligations.
BTMA leaders said domestic spinners are holding unsold yarn worth about 12,500 crore Bangladesh Taka, blaming a surge of cheaper, subsidised Indian yarn imports for eroding competitiveness. They noted that nearly 78 per cent of cotton yarn imports in the current fiscal year came from India, deepening dependence on a single source.
The threat has alarmed policymakers, as the ready-made garment (RMG) sector, accounting for around 85 per cent of Bangladesh’s export earnings, relies heavily on the local textile supply chain. Commerce Secretary Mahbubur Rahman yesterday said the government recognises the seriousness of the situation and is exploring options, while acknowledging opposition from garment exporters to ending bonded warehouse benefits for yarn imports.
BTMA President Showkat Aziz Russell termed the situation a “national crisis,” citing high gas prices, a shortage of utilities, rising bank interest rates and the lack of preparation for post-LDC graduation rules requiring higher local value addition.
Industry insiders warn that a shutdown could have far-reaching consequences. More than 10 lakh workers could face wage uncertainty, raising the risk of labour unrest, while disruptions to yarn supply could affect garment exports that account for about 85 per cent of national export earnings. Banks could also come under pressure as loan repayments stall, potentially pushing non-performing loans even higher.